Hyatt Hotels forecasts 2026 net income of $240 mln to $310 mln

Overview

• US hotel operator's Q3 comparable system-wide RevPAR rose 7.2% yr/yr

• Adjusted EPS for Q3 beat analyst expectations

• Adjusted EBITDA for Q3 beat analyst expectations

Outlook

• Hyatt projects 2026 system-wide hotels RevPAR growth of 5.0% to 5.5%

• Company expects net rooms growth of about 6% for 2026

• Hyatt forecasts 2026 net income of $240 mln to $310 mln

Result Drivers

• LUXURY AND LEISURE DEMAND - Co said luxury segment, leisure transient, and group travel drove RevPAR growth, with U.S. RevPAR boosted by consumer strength and event timing

• FEE GROWTH - Co attributed fee growth to managed hotel RevPAR, new management agreements from Playa Hotels Acquisition, and new hotel openings

• LOWER MEXICO DEMAND - Co said decline in Net Package RevPAR was mainly due to reduced travel demand to certain destinations in Mexico

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 10 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the hotels, motels & cruise lines peer group is "buy"

• Wall Street's median 12-month price target for Hyatt Hotels Corp is $197.50, about 13.9% above its October 28 closing price of $173.35

• The stock recently traded at 38 times the next 12-month earnings vs. a P/E of 46 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)